The cryptocurrency realm has been flooded with talks of FTX, Sam Bankman-Fried, Alameda, and the fall of SBF’s empire. The FTX empire went into a death spiral after it was hit with liquidity crunches. Following the ongoing troubles, FTX filed for bankruptcy, and SBF stepped down from the CEO position.
However, the trouble seems to be looping back on Bankman-Fried, as new data reveals interesting things about Alameda Research. According to WSJ, the trading firm reportedly piled on cryptocurrency tokens ahead of its listing on the FTX cryptocurrency exchange. The data is as per the analysis of Argus, a blockchain analytics platform.
Was Alameda selling after the listing to bag profits?
As per the details from Argus, Alameda was holding $60 million worth of 18 different coins. These coins were announced by FTX to be listed during the period of January 2021 to March 2022.
However, it is unclear whether Alameda sold these tokens after their listing. As a matter of fact, it is a common activity by traders where they acquire tokens before listing and sell them afterward.
“What we see is they’ve basically almost always in the month leading up to it bought into a position that they previously didn’t. It’s quite clear there’s something in the market telling them they should be buying things they previously hadn’t,” stated Omar Amjad, co-founder of Argus.
Nevertheless, Fried and his empire, which once stood as a robust cryptocurrency behemoth, have now crumbled. The event has also compelled other industry titans to provide complete transparency on their client holdings.